April 11, 2018

Crypto Airdrops

Crypto Airdrops: The new Crypto Craze

The new and unconventional world of cryptocurrency is well-known for its nontraditional deals. The latest of these deals are crypto airdrops. But what is a crypto airdrop or cryptocurrency “airdropping”?  A crypto airdrop is when a blockchain project distributes free tokens to the cryptocurrency community. Everyone can earn these tokens if they fulfill a certain task required by the distributor. It can be something simple as retweeting a specific post, and afterwards the company providing the tokens will send them to a wallet address you provide. These companies can also ask for other small favors such as your number, your email or the creation of an account in their site. For example, you can get 50 SAT (SAT tokens are worth $0.05 each), just by signing up on their website before it launches.

Companies’ interest in crypto airdrop

Probably you have wondered why these companies are so eager to, essentially, give money away for free. Actually, there is a very valid reasoning behind this. Normally, the objective of these companies is to attract people to a certain project, like a social network that otherwise would have never gained attention. Their objective is to gather people around a service before it launches so that they can have a healthy number of users in their site. An additional effect is also marketing. Having a crypto coin associated with your business makes people more interested in your business when your coin is doing well.

All in all, crypto airdrops serve one purpose: to attract customers to a certain service. A company can give away tokens which can have tremendous value, but in the end, they also benefit from it because the number of users of their services also increases.